At a meeting in Nagasaki, Bank of Japan policy board member Asada Toichiro (浅田統一郎) said that the pace of additional rate hikes should be assessed cautiously. He also discussed the outlook for monetary policy in light of economic and price conditions.
At a financial and economic meeting held in Nagasaki Prefecture on 12 November 2026, Bank of Japan policy board member Asada Toichiro (浅田統一郎) delivered a speech titled “Japan’s Economic and Price Conditions and Monetary Policy,” saying that attention should be paid to downside risks to economic activity associated with policy rate increases. He expressed the view that the pace of rate hikes should be sufficiently cautious.
His remarks reflected the view that higher interest rates could restrain corporate investment and personal consumption, putting downward pressure on the underlying inflation rate. It was explained that a central bank policy rate is an important benchmark for private-sector lending rates, and that rapid increases could affect financing conditions.
Regarding the impact on the real estate market, a cautious pace of additional rate hikes could temporarily ease the risk of a sharp increase in mortgage repayments. However, continued attention to the course of discussions at future monetary policy meetings was described as essential. The importance of reviewing financing plans was also noted.
Looking ahead, the timing and scale of rate hikes will not be determined uniformly, and cautious decisions based on economic and price trends are expected to continue. The remarks called for monitoring official statements regularly to prepare for changes in financial conditions over the medium to long term.